Luxury living takes off in Jackson Heights at posh new building

[jh_coop_buyer]

nyvz, if my reading is correct, you paid about 400K for a 3bedroom 2bath. That's a very good price. I was looking for an apartment about two years ago and found that none of 3br2ba  were near the 74th express subway, there were walk-up near 82nd st subway  and some in Hampton court (walk up too, and also a little far to the the express subway) or Hawthorn court (very expensive, at least 550K at that time, now probably fetches 700K or more). Some convert 3bedroom/2bathroom where a small dining room was converted to a tiny third bedroom in Berkeley and Manchester were asking for mid 400K.  I ended up buying a 2br/2ba about two blocks to the 74th express subway for mid 300K.

Regarding the rental price, I agree with eddie that the rental price is reasonable. For renters, they value things differently. Noise is not a big problem if the window can block out the noise. Their number 1 priority is close to the subway and then they can squeeze as many people as possible. However tiny the 2bed 2bath rental it is, two professionals can share the apartment comfortably.  There is also lack of modern rental buildings in the nearby neighborhood, some renters like to pay a premium for a new building, regardless of the quality of the actual construction.

[eddie]

And if you figure that those units would sell for around 500k, with 20% down and a 4% interest rate your monthly payment would be close to $2,900, not even factoring CC and taxes, you'd probably be looking at $3,500 a month total.

Well my math was based on having my $520k offer on a 3br 2ba in that building supposedly accepted, a bit under asking since they were having trouble selling most of those units for for a couple years.  2BRs were quite a bit smaller and going for closer to $400k if I recall. And this was a unit with the least noise problem that I saw.  The monthlies worked out to about $2500 on a 30year mortgage after 20% down plus common charges....  They apparently rented out the same unit for $3600.  That's over $1000 more and no tax benefits and no building equity.  If it was in LIC, it'd be a good deal, but at that price it's probably about 2x the going rate for Jackson heights rentals and 1.5x other luxury rentals in JH per square foot.  And that doesn't even cover the fact that I considered most of the units pretty nearly unlivable due to the 7 train noise and it's a new building but it's not very spacious compared to most of what is available in Jackson Heights.  I ended up buying a bigger renovated 3br/2ba for $100k less without the noise problem and just as close to the subway and I bet a lot of people would still say I paid too much.

I just dont see how the math adds up on those rental prices.

if that's the case that's not a bad deal, a brand new 2bed 2 bath condo with tax abatement for 400k? That's almost impossible to find ANYWHERE in the city now... as is a 3bed/2bed for 520k...

I personally wouldn't want to live in that area and that close to the subway, but those prices are becoming unheard of anywhere in the city that is close to mass transit.

[Minimal4me]

$400k for a 2 BR is not a good price in JH unless you are looking for a prewar historic coop with a refinished kitchen and bath.

 There are many many good 2 BRs in post wars for about $270k.

New constructions are going to have unfinished punch lists and untested mechanicals. Be wary. Who is running the building? How long? You and other owners might be left holding the bag. Not to say don't do it if you love the building. Get a lawyer who doesn't talk down to you to explain what you are getting into.